MIDWAY MAY BE TAKEOVER TARGET

Carol JouzaitisCHICAGO TRIBUNE

A Pittsburgh-based industrial company, Ampco-Pittsburgh Corp., said Tuesday that it acquired a 6.6 percent stake in Midway Airlines, one of the last midsize carriers not bought up in the storm of airline mergers.

Ampco-Pittsburgh, a relatively obscure, family-run company, said in a filing with the Securities and Exchange Commission that it bought the shares for investment purposes and ''to acquire a significant equity interest.''

The company said in the filing it might attempt to seek control of Chicago-based Midway but currently had no plans to do so.

Midway`s stock climbed $1.75 a share Tuesday to $20.75, a record high, on the New York Stock Exchange.

News of Ampco-Pittsburgh`s stake surprised Midway officials, who reiterated their desire to keep the airline independent.

A spokesman for Midway said company officials have not been contacted by Ampco-Pittsburgh officials.

Analysts said it appeared Ampco-Pittsburgh was trying to cash in on the high-flying speculation in airline stocks. Observers speculated that the company hoped to profit on the investment by triggering a bidding war for Midway.

Some expressed skepticism that the move would spark interest in Midway, once described by its chairman as a ''reluctant bride.''

''If Ampco-Pittsburgh is trying to smoke out another airline (bidder), it isn`t going to happen,'' said one airline analyst who declined to be named.

''In today`s environment, it`s unlikely that another airline merger would be approved,'' the analyst said. ''Why lose another viable competitor?''

Regulators have indicated reluctance to permit more airline combinations because of concerns that the industry`s consolidation may have gone too far.

Midway officials have denied rumors swirling late last week that Trans World Airlines had expressed interest in a deal with Midway.

Ampco-Pittsburgh, which retained Smith Barney, Harris Upham & Co. as investment banker, bought 662,600 Midway shares for $14.62 to $18 each, or a total or $10.3 million, between July 25 and Aug. 3.

Ampco and its subsidiaries manufacture and sell engineered products, including air- and liquid-handling equipment through its Buffalo Forge Co. and forged steel rolls though Union Electric Steel Corp.

Midway, the nation`s 16th largest carrier, was founded 10 years ago, one of the first airlines formed after deregulation. It has become the dominant carrier at Midway Airport on the Southwest Side.

The carrier plans to open a second hub in Philadelphia early next year that could eventually rival the size of its Chicago operation.

It recently struck a deal with bankrupt Eastern Airlines to buy its Philadelphia airport gates and 16 DC-9s for $210 million.

Midway also recently placed a $2 billion order for 74 new McDonnell Douglas jets.

Midway posted a profit of $6.5 million, or 60 cents a share, in 1988 on revenue of $412 million. The carrier serves 51 cities in the U.S. and Caribbean and employs 4,000 people.

Ampco-Pittsburgh had a 1988 net loss of $27.1 million on sales from continuing operations of $250.5 million, according to company reports.

The company, headed by Marshall L. Berkman, son of company founder Louis Berkman, scaled back in a restructuring that eliminated marginal operations, including a forging business, and reduced debt.